Discussion One:
Differentiating total rewards to attract employees with the requisite competencies the organization needs in order to achieve its goals and objectives is one of the key functions of the HRM function. Differentiating compensation, benefits and workplace environment such as flex schedules, teleworking or job sharing to fit the needs and desires of different segments of the workplace is a strategy most organizations engage in order to attract and retain the needed employees.
Select two segments of the workforce such as recent university graduates, parents with young children or recently retired military (just a few examples – you may select other categories). Provide a short description of the compensation and benefits you would design unique for each of the two segments. Provide your rationale for your differentiation.
Solution
Appreciation does not mean that one provides compensation and recognizes the efforts of the workforce. It means to value the contribution of the employee and consider it as good for the company. Every employee working in an organization is working for the achievement of the organization’s objectives. Every employee has its role and responsibility in achieving the results. Each contribution given by the employee to the success of the organization cannot be compared on the basis of value. However, differentiation in compensation and the benefits are necessary to cater to the different needs of the employees. The differentiation of the compensation and the benefits offered at the workplace can be sued and is certainly used by organizations as a strategy to engage employees and retain the talent within the organization (Verma & Chaturvedi, 2014). Attracting and retaining a diverse skill set needs to be catered to providing the attractions to each employee which attracts them. These attractions, benefits, and compensations can vary as each human has different sets of needs, wants, and desires.
An example of such differentiation in compensation can be given by considering a parent with young children and a university graduate, who both are working in similar positions and have a similar experience. The compensation and benefits for the university graduate would be different to the one given or needed by the parent. Training workshops for career development, achievement, recognition, promotion, and incentives for hard work can be considered appropriate compensation and benefits for the university graduate. While paid leaves, working from homes, offs given between the months, maternity leaves, sick days, medical and dental allowances, childcare assistance, flexibility in working hours and telecommuting privileges can be considered appropriate compensation and benefits for a parent employee. A worker who is older would more prefer health care, retirement benefits, and insurance.
Reference
Verma, P., & Chaturvedi, A. (2014, December 27). Companies like HCL Technologies, others use differentiated compensation strategies to separate good talent. Retrieved from https://economictimes.indiatimes.com/news/company/corporate-trends/companies-like-hcl-technologies-others-use-differentiated-compensation-strategies-to-separate-good-talent/articleshow/45656402.cms
Discussion Two: Application
Internal equity and external competitiveness are two of the core elements of effective compensation plans. If you are employed, ask your HRM department what steps are taken by them to ensure internally that compensation is assigned in an equitable manner and externally, the compensation for benchmark positions are competitive. If you are not employed, you may either seek the answers from an organization of your choice or research the needed steps and describe the needed steps.
Solution
From providing equitable compensation, the first step is to identify and find the needs of the employees. We all have personal experience, and it is also the findings of research that congratulating and appreciating an employee on his work done can go a long way in aiding to achieve success for the organization and employee both. Appreciation not only encourages but also acts as motivation for the employees to improve their work on the next task. Appreciation of salespersons who work hard to convert a lead into sales should be done publicly. Another step is to bring the appreciation of the employees in the formal meeting of the management to make them improve on personal achievements (Kramar & Syed, 2012).
It also motivates other salespersons to work on their targets to get the same appreciation. Managers should be on the lookout for new ways to make the sales persons feel part of the company success. Any goal achieved by the workforce should not be left without highlighting it in front of the workforce and using it to appreciate their work. Another important step is to provide appropriate certifications, awards, and accolades to the salespersons. It shows them that the organization cares about their career, even if they will not work in future with them. Recognition, however, should be seen as earned and balanced. Favoritism will only damage the whole aim of the compensation system and affect the company negatively (Bhattacharyya, 2014). All recognition, appreciation, and compensation should be based on fair reason which is well publicized to ensure there are no wrong beliefs in the workplace for why these benefits were given to someone. Providing compensation without any reasonable cause is also not fair to the ones who have worked hard to earn it. Thus, management should ensure a transparent compensation system to make it equitable.
References
Bhattacharyya, D. K. (2014). Compensation Management. Oxford University Press India.
Kramar, R., & Syed, J. (2012). Human Resource Management in a Global Context: A Critical Approach. Palgrave Macmillan.
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